Generation Z is rewriting the rules of personal finance. Unlike the stereotype of young adults living paycheck to paycheck, today’s youngest workers are proving so far to be some of the most dedicated savers. The Pew Research Center defines Gen Z as spanning from 1997 to 2012. According to Plinqit’s most recent State of Savings Report, nearly half of Gen Z respondents (47%) save more than 20% of their monthly household income — outpacing Millennials (36%), Gen X (17%) and baby boomers (18%). And several of Plinqit’s bank clients report that Gen Z customers maintain average saving balances exceeding $40,000.
Goal-oriented Gen Z has access to a variety of personal finance education and resources that older generations lacked — this includes influencers on social media, financial podcasts and digital tools to manage their money.
However, Gen Z’s ability to self-service doesn’t mean banks can’t play an important role in helping this generation reach financial milestones. In fact, it’s quite the opposite when approached the right way.
Why High-Yield Savings Accounts Matter
Traditionally, banks have focused on acquiring new checking accounts as a gateway to deeper relationships. But checking accounts tend to be low balance and low engagement, making it harder for financial institutions to foster long-term loyalty. High-yield savings accounts (HYSAs) are a different story.
A consumer who opens a HYSA could be thinking about their long-term financial growth. They’re proactively seeking an easy and safe way to make their money work for them, and may be likely to explore additional financial products in the future, such as investment accounts, credit-building tools or mortgages. Banks can position high-yield savings as the foundational product for their young customers’ financial success.
How to Engage Gen Z With High-Yield Savings
• Align with Gen Z’s values. Financial institutions can appeal to Gen Z by launching affinity or side brands tailored to niche demographics. Crafting a niche experience with compelling product offerings, such as high-yield savings accounts, allows banks to compete with fintechs while preserving their legacy brand identity. Plinqit High Yield Savings clients have generated $3 billion in net new core deposits in the past year doing just that—carving out new brands to reach new audiences.
• Offer seamless digital experiences. This generation has grown up with mobile-first, fast and frictionless experiences. A clunky user interface or slow account-opening process may be a turnoff. Offering a smooth, intuitive account opening experience is crucial to keeping Gen Z engaged, which leads to the next point: Are you prompting this demographic to open the right type of account or just another standard checking account?
• Help Gen Z open and fund the right accounts. Financial institutions should guide Gen Z toward high-yield savings accounts, helping them understand the long-term benefits of saving first. While many banks focus on checking accounts, these can attract low-balance, low-engagement customers; these accounts can be transactional in nature or underutilized. But establishing a strong savings foundation can create deeper financial engagement and greater long-term customer value.
• Focus on goal-based saving. Members of Gen Z are building toward their future. Whether that’s building an emergency fund, traveling or buying a home, banks can highlight how HYSAs can help them achieve these milestones faster.
• Don’t ignore social proof. Gen Z is accustomed to peer recommendations and online reviews relative to more-traditional approaches to advertising. Testimonials, customer success stories or savings milestones within banking apps can reinforce the value of saving.
• Don’t assume all Gen Zers have the same risk tolerance. While some might be eager to invest and take financial risks, others prefer a more cautious approach. Offering a mix of high-yield savings, investment guidance and budgeting tools can help cater to a range of financial personalities.
• Don’t make engagement a one-time effort. Gen Z wants ongoing value from their banking relationships. Regular check-ins, rewards for saving and personalized insights can make a difference in retention and long-term loyalty.
Gen Z is proving that saving isn’t just a habit — it’s a priority. They’re thinking about their futures and eager to grow their wealth. Banks that recognize this shift and position themselves as partners in Gen Z’s financial journey can attract young savers today and lay the groundwork for deeper, more profitable relationships in the future.
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